Bankruptcy Law

9th Circuit judges say little of their thinking at hearing on unfinished law firm business clawbacks

A federal appeals court offered few hints at a Monday hearing about the direction in which members may be leaning concerning the right of a failed law firm, if any, to “claw back” profits from unfinished business taken by a former partner to a new law firm. A U.S. District…

Jun 14, 2016 12:04 PM CDT

Supreme Court decision leaves restructuring of Puerto Rico’s debt to Congress

Federal bankruptcy law bars Puerto Rico from restructuring the debt of its insolvent public utilities, the U.S. Supreme Court has ruled in a 5-2 decision. The ruling leaves Puerto Rico’s fate in the hands of Congress, Bloomberg News and the Wall Street Journal (sub. req.) report. The U.S. House of…

Jun 13, 2016 11:17 AM CDT

Following Hulk Hogan lawsuit, Gawker seeks Chapter 11 bankruptcy status

Gawker Media has filed for Chapter 11 bankruptcy protection in the Southern District of New York. According to the Hollywood Reporter, the website has a $7.66 million loan from Silicon Valley Bank, and a credit agreement with VC Partners for $15 million. In the petition filed Friday, the company whose…

Jun 10, 2016 3:00 PM CDT

Lawyer steps aside from representing controversial litigator in his personal bankruptcy

A bankruptcy attorney representing Paul Hansmeier, a Minnesota lawyer who has sparked controversy due to his litigation tactics, removed herself Tuesday from his personal Chapter 7 case. Attorney Barbara May said she takes pride in representing clients other lawyers don’t want, reports the Minneapolis Star Tribune. She told the newspaper…

May 18, 2016 9:55 AM CDT

In a first, a BigLaw firm announces it will use artificial intelligence in one of its practice areas

Baker & Hostetler is the first law firm to announce that it will use a ground-breaking artificial intelligence product for legal research. The law firm will license Ross Intelligence in its bankruptcy practice, report the Am Law Daily (sub. req.) and a press release. The research product uses IBM’s Watson…

May 9, 2016 7:45 AM CDT

Angry over drug sentence, inmate filed false $5.8M debt claim against federal judge, feds say

Unhappy with his 11-year sentence over two drug cases, a convicted marijuana smuggler found a way to get back at the judge who imposed it, authorities say. While still imprisoned, Leandro Cardenas Luna, now 58, managed to file an involuntary bankruptcy petition in 2014 against U.S. District Judge Alia Moses,…

May 5, 2016 11:05 AM CDT

Disbarred lawyer says he will continue to practice while appealing the order

Following a jury trial, Texas attorney Mark A. Cantu was disbarred in an April 11 court order, effective immediately, over his conduct in personal bankruptcy cases. But he says the order doesn’t bar him from continuing to practice while appealing and he intends to do so, reports the Monitor. “I’m…

Apr 29, 2016 2:45 PM CDT

Ex-client sues firm for allegedly accepting credit card payment for bankruptcy legal fees

Updated: When Loyd Cadwell decided to file for bankruptcy, he allegedly paid legal fees to the Orlando, Florida-based KEL law firm in January using two credit cards. But that’s not allowed under bankruptcy law. So when Cadwell later decided to switch to another law firm, Jacksonville-based Mickler & Mickler noticed…

Apr 22, 2016 11:50 AM CDT

9th Circuit discharges $6K that bankrupt attorney owed ex-client

A suspended California lawyer fighting to get her law practice privileges reinstated has at least one less obstacle to contend with. In a Thursday ruling, a federal appeals court agreed with Marilyn Scheer—who handled the appeal pro se—that a debt of nearly $6,000 she owed a former client for unearned…

Apr 18, 2016 1:30 PM CDT

1st Circuit urges discharge of former executive’s $246K in student loan debt

After years of pro se legal battle and the pro bono help of a Brown Rudnick lawyer who took his case while it was pending before a federal appeals court, Robert Murphy may be on the verge of seeing more than $246,000 in student loan debt discharged in bankruptcy on…

Apr 15, 2016 4:05 PM CDT

ABA urges 9th Circuit to nix profits clawback from insolvent law firm’s unfinished business

After an hourly rates client of an insolvent law firm terminates the relationship, can a bankruptcy trustee later claw back some of the future profits earned by the client’s new counsel? After Howrey LLP dissolved in 2011, Chapter 7 trustee Allan Diamond brought this question to court and sued eight…

Apr 11, 2016 3:20 PM CDT

Photo of 50 Cent at courthouse with cash stacks in waistband ‘not funny,’ says bankruptcy judge

A federal bankruptcy judge was not amused by a photo posted by 50 Cent on Instagram and Twitter last month. In addition to showing the rapper with three stacks of what seem to be $100 bills stuck in his waistband and holding a yellow bag of candies, the photo apparently…

Apr 7, 2016 3:05 PM CDT

Former Dewey & LeBoeuf partners not liable for unpaid rent, judge rules

In a ruling that took hundreds of former partners of Dewey & LeBoeuf and predecessor firms off the hook, a New York judge on Monday held that an office lease did not impose personal liability on them for rent that wasn’t paid after Dewey filed for bankruptcy. The original 1989…

Apr 5, 2016 12:00 PM CDT

Defrauded builder claims convicted lawyer enjoys lavish lifestyle despite restitution order

A Wisconsin homebuilder defrauded by its former CEO claims a lawyer convicted in connection with the $20 million scheme is living a lavish lifestyle and moving assets to avoid paying remaining restitution. Bielinski Brothers Builders is seeking dismissal of a bankruptcy action filed by the lawyer, Michael Gral, formerly a…

Mar 30, 2016 8:18 AM CDT

Lawyer known for porn-downloading litigation hid $178K in closet, trustee suit says

A Minnesota lawyer known for his controversial porn-downloading litigation against individual defendants was facing $576,000 in court-imposed sanctions at last report. However, Paul Hansmeier may not be able to use bankruptcy as a shield. In December, a judge rejected his Chapter 13 petition, converting the case to a Chapter 7…

Mar 28, 2016 12:00 PM CDT